SMCI: sold these batch of SMCI shares at $40 and took in 40% capital loss as part of the covered call expired in the money on 14th Feb.
Strike price selected was $40 and SMCI closed up 80% just in the past 2 weeks to $47.91.
As the result, portion of my underlying shares were called away at $40 and taken in 40% actual loss of capital.
It was an ok scenario for me as the earnings could have gone either way, meaning that it could go even lower. When I sold the calls, SMCI was still hovering at <$30 so now when I could let them go at $40, despite taking in a capital loss of 40% was an acceptable outcome for me.
Decided not to roll the call further up and out since I've decided to reduce capital outlay for this counter progressively.
| Side | Price | Realized P&L |
|---|---|---|
| Sell Close | 40.00 | -39.08% Closed |
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